M&G Prudential has produced flyers for IFAs to show clients, highlighting the advisers are not taking any payments to use its products.
The flyers for IFAs to show their clients, part of new Mifid II requirements, say: ‘We want you to know that we don’t pay money to any financial adviser for recommending our products or funds, however we do give them support in some or all of the following ways.’
The ways in which Pru says it does support its advisers are through:
- emails, video content and customer communication help;
- third-party expert reports on its investment products and tools and calculators for IFAs business plans and advice processes;
- holding seminars and workshops on regulation and legislation; and,
- contributing towards the cost of ‘development activities your adviser could attend’.
The flyers are listed on Pru’s website. The provider says it was prompted by Mifid II regulations, which it claims mean advisers have to tell their clients what support they receive from providers.
‘This requirement applies for all products falling under Mifid II and IDD [Insurance Distribution Directive],’ Pru said on its website.
However The Lang Cat director of consulting Mike Barrett said he has not seen any other examples of platforms or providers producing these inducement documents.
‘I have never seen a provider be that explicit to give the adviser material to help them meet that disclosure requirement,’ he said. ‘It seems like it is a real belt-and-braces approach with Prudential. There is nothing wrong with taking that approach but if there are any issues there it is down for the adviser to disclose it to its clients.’
Mark Watson, director of London and Essex-based Integris Wealth, said he doesn’t see anything wrong with the Pru flyers.
‘It is probably a little bit over the top, but is just in the scheme of Mifid II and being transparent about what Pru gives advisers. I don’t think it is necessary but I am all for transparency and it may be good that people can see there is no incentives for us [IFAs] to give them business.’
A Pru spokesman said: ‘We produced this flyer to be as transparent about our relationship with advisers, how we interact with them and how we support them. It is designed for advisers to use with their clients during the advice process.’